DAVAO City Chamber of Commerce and Industry Inc (DCCCII) has welcomed the signing of the new cabotage law by President Benigno Aquino, a measure that is expected to lower the costs for both export and import cargo, reports the Davao Sun-Star.
Under the revision, foreign vessels will be allowed to pick up and deliver shipments straight to local ports across the country, eliminating the need to employ local shipping companies to move goods between Manila and other domestic ports.
Chamber president Antonio dela Cruz said the newly-signed amended Cabotage Law will put an end to problems confronting shipping industry players on export and import shipping costs by opening the trade to more players.
"We consider the amended law as a welcome development because this has been a problem of the private sector, especially those who are into the shipping industry and those who regularly ship their products to and from Davao City," said Mr dela Cruz.
"The absence of competition has resulted in high cost of transporting raw materials to manufacturing sites, finished products and agricultural goods to various destinations, and imported products to distribution areas," said a report by the Philippine Institute for Development Studies.
Said Philippine Exporters Confederation president Ferdinand Maranon: "Davao shippers widely welcome this development. We commend the president's move in signing the amendments and considering this as his priority economic bills."
Said Mindanao Development Authority investment director Romeo Montenegro: "Currently, our domestic shipping rates are very high. It is more expensive to ship products domestically than to ship it abroad."
For instance, he said, Davao to Indonesia is just $550 per TEU but if we do the same domestically it will cost around $1,200 to $1,300 per TEU.
WORLD SHIPPING
23 July 2015 - 17:31
Shippers, stakeholders hail Aquino's liberalising Philippines cabotage law
DAVAO City Chamber of Commerce and Industry Inc (DCCCII) has welcomed the signing of the new cabotage law by President Benigno Aquino, a measure that is expected to lower the costs for both export and import cargo, reports the Davao Sun-Star.
WORLD SHIPPING
23 July 2015 - 17:31
Shippers, stakeholders hail Aquino's liberalising Philippines cabotage law
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